Let's not overreact or jump to conclusions. Why wouldn't you own what you bought?
And as for the Cloud, I use MobileMe and iDisk. I work off iDisk, so everything of mine is on the Cloud. But it also saves me a local copy automatically. No problems.
Remember, we're not just talking music -- we're talking about all media -- and we're not just talking about all media -- we're talking about whatever you or I choose to save in the Cloud.
Why wouldn't I own what I bought? It happens all the time -- less so with music, finally -- but read up on the Kindle/George Orwell fiasco -- and the big surprise it was for the consumer -- to find out that they didn't own it -- indeed, don't own a single thing they purchase for their Kindle.
Really, only music has been sorted out in favor of the consumer -- and that took years and years.
The issue here is DRM'd media that you buy that is so restrictive it can only be used on one platform (or be saved to your computer). If I can only watch movies I purchase from iTunes using iTunes, if it goes under, I lose my content -- because my only media to watch it on-the-go has gone bye bye.
Even if I OWN DRM-free everything, I'm still at risk of losing it on the cloud -- unless I back it all up myself on my own hardware -- because the company owning that particular cumulus could go under any time.
There are inherent problems with subscription-based formats -- streaming music or other media is fine and dandy -- just don't expect it to be there forever. Just because it comes from the cloud, and has big advantages because of that central server in the sky, doesn't mean you won't have it forever -- even if the subscription company says you can "buy" the music and stop streaming it -- unless it's DRM-free and you store it on your own hardware. DRM-free and stored in the cloud (and only the cloud) is just an epic fail waiting to happen.
As far as your ability to back it up yourself, assuming it's DRM-free content, you're great -- as long as you're backing your land-based storage as well (even if it is to back up in the cloud). Unfortunately, I think people are not understanding this.
People are focused on what will happen to their music if LALA were to go away, but what people really to need to ask themselves is -- what happens if my cloud goes away?
The cloud must be looked at as nothing more than a giant external hard drive. It certainly doesn't give anyone any advantages in terms of what they own or don't own. It just lets you access stuff from anywhere, given you've got the hardware to do so.
If it's in the cloud, and it's only in the cloud, and the cloud blows away, you're out of luck.
The Government will need to step in and insure cloud content like they do banks, or people are going to start buying insurance for their cloud content -- I'm sure someone's already working on it.